Purple United Sales Limited is set to launch its initial public offering (IPO) on December 11, 2024. This marks an exciting opportunity for investors to engage with a premium fashion brand specializing in children's apparel, footwear, and accessories. Below, we explore the critical elements of this IPO, including subscription details, objectives, and market insights.

IPO Overview:

Purple United Sales Limited is offering a total of 26.04 lakh shares under its Book Built Issue, valued at ₹32.81 Crores. The share price is set in the range of ₹121 to ₹126 per equity share. Investors can participate in the IPO between December 11, 2024, and December 13, 2024, with the allotment expected on December 16, 2024. The shares will be listed on the NSE SME platform on or around December 18, 2024.

The IPO targets both retail investors and High-Net-Worth Individuals (HNIs), with a minimum investment for retail investors set at ₹1,26,000 (1,000 shares) and for HNIs, ₹2,52,000 (2,000 shares). The lot size is 1,000 shares, which provides a clear structure for those looking to participate.

Market Capitalization & Financials:

At the top price of ₹126 per share, the company's market capitalization will be ₹121.08 Crores. The Grey Market Premium (GMP) for the IPO is anticipated to be ₹0, suggesting cautious investor interest based on the company's financial outlook.

Use of Funds:

The proceeds from the Fresh Issue will be allocated as follows:

• ₹535.40 Lakhs for opening new stores.
• ₹1,800.00 Lakhs to meet working capital requirements.
• The remaining funds will be directed toward general corporate purposes.

IPO Allotment Process:

On December 16, 2024, investors will be able to check their IPO allotment status. The process is simple and involves visiting the registrar's website, selecting the Purple United Sales IPO, and entering the application number, PAN, or DP Client ID to get the status.

Company Overview:

Founded in 2014, Purple United Sales Limited operates the "Purple United Kids" brand, which offers high-quality, lab-tested children's products. Their extensive range includes apparel for infants, toddlers, and older kids, as well as footwear and accessories. They have an established presence across India with 17 exclusive brand outlets (EBOs) and a robust online presence through e-commerce platforms such as Myntra, Amazon, and Flipkart.

Growth Strategy & Market Position:

Purple United's growth strategy focuses on expanding its footprint in India, increasing market share, and capitalizing on the rapid growth of e-commerce in the retail sector. They are well-positioned to benefit from the expanding demand for kids' fashion, with a diverse product portfolio emphasizing fun, fashion, and functionality.

Risks & Challenges:

While the company’s growth potential in the children’s fashion market is promising, it faces challenges such as its concentrated retail presence in the National Capital Region (NCR) and broader economic fluctuations that may impact consumer behavior.

The textile and apparel industry, particularly the kidswear segment, is benefiting from increasing disposable incomes and a rise in the young child population, which are critical drivers for the continued demand for children's fashion. However, the industry faces challenges, including stiff competition from both organized and unorganized players, and volatility in raw material prices.

Conclusion:

Purple United Sales Limited's IPO presents an intriguing opportunity for investors looking to tap into India's growing kidswear market. With its established brand, diverse product offerings, and strategic growth plan, the company is well-positioned for future success. However, potential investors should carefully evaluate market conditions and the company’s financial health before making investment decisions.